Zell makes play for Home Products

Billionaire investor Sam Zell is leading an unsolicited takeover offer of Home Products International Inc., trumping a bid by the Chicago-based housewares maker's Chairman and CEO.

Mr. Zell's holding company, Equity Group Investments LLC, has teamed up with former Home Products board member Joseph Gantz and Los Angeles-based private-equity firm Triyar Capital LLC to offer $1.75 a share in cash, or $13.8 million, for Home Products, according to documents filed Friday with the U.S Securities and Exchange Commission.

That's 16% higher than the $1.50 a share offer that Home Products Chairman and CEO James R. Tennant made in June.

Asked if he would sweeten his offer, Mr. Tennant replied: "Anything's possible."

Mr. Zell, who ranks 87th on the Forbes 400 list of wealthiest Americans, made his fortune in real estate and by investing through Equity Group in undervalued companies. The holding company and its affiliates, which own an 8.4% stake in Home Products, say they will vote against the Tennant offer, according to SEC filings.

Mr. Zell was traveling and unavailable for comment. Equity Group President Donald J. Liebentritt declined to comment.

Home Products shares rose 28 cents to $1.71 in late afternoon trading, a 20% increase over their Thursday closing price of $1.43.

With products ranging from ironing boards to shower caddies, Home Products has struggled in recent years due to foreign competition and high resin prices, which the company has been unable to pass along to the big discount merchants that carry its products.

Home Products lost $772,000, or 10 cents a share, in the first six months of the year, compared with a loss of $6.5 million, or 82 cents, in the year-ago period. Sales rose 14% to $117.4 million.